Financial Wellness: Understanding Needs Vs. Wants

While there is nothing wrong with spending money on fun activities and items, it's important to know the difference between needs and wants and budget accordingly. 

• A need is a necessity, such as food, clothing, and shelter. 
• A want is something that can improve your quality of life, but you could go without, such as designer items, coffee-house drinks, or vacations. 

There is nothing wrong with budgeting and buying things that make you happy. It's just important to not live outside your means and to focus on having money in savings in the event of an emergency. Like most things in life, budgeting is all about finding a balance that works best for your own life. 

Did you know that at American 1, we offer free Financial Coaching to our members? Learn healthy financial skills to set yourself on the path to financial freedom with a free financial coaching appointment! Our certified American 1 Credit Union financial coaches can help answer all of your questions and teach you how to get your money and budget on track. 

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